US says Bitcoin is taxable as property, not a currency
Published on Mar 26, 2014 4:55 AM
WASHINGTON (AFP) - The US tax authority on Tuesday ruled that Bitcoin will be taxed as property, like stocks or real estate, rather than as a basic currency like the dollar.
Issuing the ruling just weeks before the April 15 deadline for paying 2013 taxes, the Internal Revenue Service may have dealt a setback to those wanting the online money to be officially recognized as a currency, like the dollar.
But the ruling benefited investors who could end up being taxed at a lower rate on gains they make from trading virtual currencies like Bitcoin.
"In some environments, virtual currency operates like 'real' currency," the IRS said. "But it does not have legal tender status in any jurisdiction."
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